Mastercard and cryptocurrency exchange Binance will be discontinuing their four crypto card programs in Argentina, Brazil, Colombia, and Bahrain starting September 22. The Binance cards allow users to make payments in traditional currencies using their cryptocurrency holdings on the exchange. While Mastercard’s website lists partnerships with other crypto exchanges, this decision will not affect any of their other crypto card programs. The reason for ending the Binance program and the decision-maker behind it has not been disclosed.
Binance, which is currently facing legal and regulatory challenges, including a lawsuit from U.S. regulators, has not provided a comment on the discontinuation of the card program. Mastercard’s head of crypto and blockchain mentioned earlier this year that the company was seeking more partnerships with crypto firms, but did not specifically comment on Binance. Mastercard also declined to comment on the reasons behind the decision to end the program.
The discontinuation of the Binance card program highlights the challenges faced by crypto exchanges in maintaining partnerships with traditional financial institutions. Binance has been dealing with regulatory scrutiny and legal issues, which may have influenced Mastercard’s decision. However, it is unclear if these factors directly influenced the discontinuation of the card program or if other factors were involved.